(Bloomberg) — Grab Holdings Ltd. said revenue rose 6% in the first quarter after the ride-hailing and delivery company won back consumers as the pandemic receded in Southeast Asia.
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Revenue increased to $228 million after the Singapore-based company added sales from Jaya Grocer, a platform it acquired in January. That was more than the $139.2 million analysts were expecting, according to data compiled by Bloomberg. Grab’s net loss narrowed to $435 million, as the company fights to gain profitability following years of heavy spending in pursuit of market share.
The company managed to grow monthly users 10% to 30.9 million after Southeast Asian countries removed pandemic-era restrictions. Per-user spending climbed 19%, it said. Unlike other Internet companies that are grappling with cooling post-Covid online activity, Grab’s car-hailing and delivery businesses benefit as life returned to normal.
The company had struggled since becoming a publicly listed company in the U.S. through a merger with a blank-check company in December. Mounting losses, coupled with a broad tech selloff, have weighed on its shares, which have lost more than 70% since the startup went public.
Grab’s Deliveries to Offset Mobility Weight on Revenue: Preview
Key Insights
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Revenue from delivery business jumped 70% to $91 million
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Revenue from mobility business declined 22% to $112 million
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Revenue from financial services rose to $11 million
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Grab plans to launch a Singapore digital bank, currently in internal pilot, in the second half, CEO Anthony Tan said during a conference call
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Deliveries GMV was $2.56 billion vs its forecast of $2.4 billion to $2.5 billion
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Mobility GMV was $834 million vs its forecast of $750 million to $800 million
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The company said it expects full-year revenue to increase to $1.2 billion to $1.3 billion; sales excluding Jaya Grocer will rise no less than 50% this year, CFO Peter Oey said on the call
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Grab’s cash and cash equivalents fell to $3.4 billion at the end of March from about $5 billion at the end of 2021, partly because of cash outflow from operating activities and the acquisition of Jaya Grocer
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Partner incentives climbed 55% to $216 million, while consumer incentives rose 85% to $344 million
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Grab expects second-quarter deliveries GMV of $2.55 billion to $2.65 billion
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Company sees second-quarter mobility GMV of $950 million to $1 billion
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Grab expects second-quarter financial services total payment volume, before consolidation, to reach $3.5 billion to $3.6 billion
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Company sees GMV growing 30% to 35% in 2022
Market Reaction
(Updates with digital bank plan in fourth bullet point)
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